OTT - Aug 23, 2022
If subscribers want Disney+ without ads, they will have to pay a bit more. The Walt Disney Company unveiled Disney+ Basic and Disney+ Premium tiers during its third-quarter earnings call on Wednesday afternoon. Initially, Disney+ Basic will be $7.99 per month with no option to subscribe annually, while Disney+ Premium will be $10.99 per month and $109.99 annually, an increase of three dollars a month and $40 a year. On social media, users are debating the merits of the price hike and whether to continue paying for Disney+.
In a statement, Kareem Daniel, chairman of Disney Media & Entertainment Distribution, said that the company's new ad-supported Disney+ streaming service expands the lineup across its entire streaming portfolio. To appeal to an even broader audience, we will provide consumers with greater choice at a variety of price points."
An ad-supported tier would allow Disney+ to expand its subscriber base. It is a win for everyone - consumers, advertisers, and our storytellers - to make Disney+ more accessible to a broader audience at a lower price.
However, I wonder if raising the price of Disney+ with ads is a "lower price point" if it is offered at a lower price. Social media appears to be divided on the overall reaction. Considering the United States is on the verge of a recession, some Disney fans are considering whether keeping their subscriptions is the best use of their money.
OTT - Aug 22, 2022